Lower Funnel
TV is in the midst of a profound transformation – this is the moment when TV truly becomes a conversion medium for advertisers. Consumers are no longer passive viewers; they expect their TVs to be as interactive, responsive, and actionable as every other digital platform in their lives. These changing expectations call for a revolution in TV advertising to seize new opportunities for engagement and commerce. In this series of articles, we will explain why this transformation is taking place, the data and analytical tools that undergird it, and how advertisers can shift their thinking to build an early competitive advantage.
TV creates a relationship. New data from Samsung Ads’ Smart TV Consumer Behavior Tracking Study, fielded among 1,000 Smart TV users, suggest that Americans have a new framework for how they think about and relate to their TVs. Smart TVs, with their native operating systems, home screens, apps, and interactivity offer a new two-way relationship for viewers that never existed in TV. This framework has huge implications for how advertisers use TV as a media channel.
Viewers expect more, younger viewers even more so. Data from our study show that more than 80% of Smart TV owners use their TV for more than just watching TV shows or movies. Among 25-34 year-olds, that increases to more than 95%. These Smart TV users are using their TVs in a myriad of ways, some directly related to entertainment but many others totally unrelated to how we previously thought about TVs. Smart TV operating systems, like Samsung’s Tizen, are both responding to, and leading the shift, offering apps that make this new relationship possible.
Smart home control: More than 25% of younger Smart TV owners use their TVs to manage their connected homes. In addition to the Samsung Smart Home app, Smart TV users can download Amazon Alexa, Philips Hue, and Google Assistant apps to control their connected appliances, lights, and thermostats.
Social media and digital video: Two-thirds of Smart TV users - and more than three-quarters of younger users - use their TV for internet-based video on apps like YouTube and Twitch. Nearly half of younger users access social media apps like Facebook Watch, Instagram, and X.
Gaming: Gaming is not new to TVs but Smart TVs offer a whole new set of gaming experiences, for all types of gamers. The Samsung Gaming Hub offers game streaming of triple-A PC and console titles directly through the internet connection. But gaming has expanded and the proliferation of casual games has also spread to the TV. Apps for games like Angry Birds, Tetris, and UNO are all available for download. More than half of younger Smart TV users game on their TVs.
In addition to its emerging interactivity, the TV’s core mission to deliver video is healthier than ever.
While Smart TVs offer more options to users across more activities, what hasn’t changed is that when it comes to video, TV reigns. According to eMarketer, over 50% of digital video is consumed via connected TVs, and CTV usage is expected to grow by 7.2% in 2025—five times faster than mobile. In a major signal that TV isn’t just holding its ground, but surging forward, YouTube reported in February that more than half of its viewership now happens on TV sets
Rethink TV advertising to seize new opportunities for engagement and commerce
Advertisers have an opportunity to think differently about TV: To start thinking of TV both for building strong brands over the long-term, and now, driving revenue in the short-term using TV’s interactivity. TV has always had the power to drive immediate decisions--but that capability has been poorly invested in due to limitations in measurement. Thanks to CTV’s internet connectivity and interactive capabilities, the purchase loop can now be closed and measured immediately—whether the resulting purchase happens on the TV, on a consumer’s connected device, or in-store.
Ad format innovation: QR codes are increasingly embedded in TV creative to drive users to mobile devices and purchase. Remote control-based purchase technology is advancing. Interactive ad formats are available in addition to :15, :30, or :60 second commercials.
Measurement enables performance: Passive measurement solutions from mobile measurement partners (MMPs) now capture consumer response to TV ads, and enable advertisers and media owners to connect TV ad exposure to relevant behaviors across devices-- allowing TV to join social, mobile, display, and search as a fully measurable performance medium driving business results.
Consumers are demanding that TV evolve — and as usual, technology providers and advertisers are chasing behind to take advantage of the behavior change. In this case, TV has evolved from a communal living room device to a personal device; characterized by a wide range of interactivity; which redefines TV not only as the ultimate viewing device, but one that delivers utility for the consumer, and business outcomes for the advertiser.
In our next article we will dig into the massive amount of data that Smart TVs create and the advances in machine learning and AI that are driving the efficiency in targeting and ad serving decisions – empowering CTV’s full funnel potential.
